Chap 5, Sec 1: Opening Accounts Flashcards
The _______ rule is the cornerstone of all your dealings with clients.
KYC
Any employee who does not diligently fulfill his or her reporting responsibilities under The Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) can potentially face either or both…..
a prison term of up to five years and a fine of up to $2,000,000
Certain clients in a prominent position of public trust, their immediate family members, and their close
associates are referred to as……
politically exposed persons (PEPs)
The foreign politically exposed person (PEP) category includes the following persons:
Any person who holds, or has held, an office or position in, or on behalf of, a foreign state
That person’s spouse, common-law partner, child, mother, father, brother, or sister
The spouse’s or common-law partner’s mother or father
Anti-money laundering regulations require that dealer members verify the ________ and __________ of any person opening a securities account.
Identity
Date of Birth
Your dealer member’s compliance regime should include procedures to ensure that any accounts considered higher risk for money laundering are _____________ to assess whether there have been any significant changes to a client’s profile.
reviewed regularly
A dealer member’s AML/ATF regime should include a program of ___________, whereby all client accounts are categorized according to risk.
risk rating
In other words, __________ accounts should have a more stringent supervisory system in place, given their categorization.
high-risk
Accounts in the high-risk category may include, for example, ___________, all _______________,
and all accounts for which a __________ transaction has been filled.
Offshore Accounts
PEP accounts
Suspicious
Regarding periodic reviews, ____________ guidelines suggest regular intervals of _______ years.
FINTRAC
2 Years
Beneficial owners of a corporation or an entity other than a corporation or trust, such as a partnership, are individuals who own or control ___% or more of the entity, either directly or indirectly
25
As an RR working on the dealer member’s behalf, you must record the information obtained. If you cannot obtain the information, you must record the reason why. Furthermore, if the information cannot be obtained within _____ days of the account’s opening, your firm must ______ the account to liquidating trades and transferring assets out until the information has been obtained.
30 days
restrict
IIROC rules clearly state that dealer members dealing with _________ accounts must have supervisory reviews that are designed to detect transactions that raise suspicion of money laundering or terrorist financing activity.
institutional
Identity verification requirements set by the ______________apply regardless of the method used to open the account.
PCMLTFA
When verifying ID, photocopies, scanned copies, or other reproductions are ____________ for verification purposes
not acceptable
